" IMF signals progress on $3 billion programme for Pakistan, await new cabinet formation "

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WASHINGTON: The International Monetary Fund (IMF) is set to conclude a significant financial programme with Pakistan pending the country’s new cabinet formation, the organisation confirmed on Thursday.

The financial organisation is poised to finalise a $3 billion “Stand-By Arrangement” programme for the economically-battered Pakistan. The Director of Communication at the IMF Julie Kozak recently confirmed this development during a media briefing held in Washington.

However, the programme’s progress is contingent upon the formation of a new cabinet in Pakistan.

Read more: US State Department refrains from commenting on Pakistan-IMF negotiations

Pakistan’s current Stand-By Arrangement is set to expire in April 2024, having already received $1.9 billion under this program.

The country’s caretaker government played a crucial role in maintaining economic stability through stringent fiscal policies aimed at curbing inflation and ensuring social security for its citizens.

Kozak discussed the significance of completing the current stand-by arrangement with Pakistan. She stated fiscal discipline and social safety nets during transitional periods were necessary for keeping the country’s economy stable during uncertain times.

Read more: IMF recommendations to impose significant costs on Pakistanis

Efforts to maintain fiscal targets and increase foreign exchange reserves have been key priorities for Pakistan. Additionally, timely adjustments in tariff rates within the energy sector have contributed to economic stability.

Looking ahead, the IMF remains dedicated to finalising the stand-by arrangement with Pakistan. Post-cabinet formation, the IMF plans to dispatch a mission for an economic assessment to ensure sustained growth and stability.

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